Where Islam spreads, freedom dies

According to the normal market rules of supply and demand, rents ought to fall in a recession. But when you have hundreds of thousands of people pouring into the country each year who aren't playing by the rules of the market, that logic no longer applies.

Tenants are bracing themselves for more pain, with most expecting rents to rise over the next 12 months, driven upwards by an acute lack of supply and a doubling in demand.

The most pessimistic tenants are forecasting increases of more than 10 per cent, according to a survey published today by Rightmove, the website. The squeeze is compelling young people to shoehorn extra flatmates into a property to pay the bills. In future some priced-out tenants could be forced to become lodgers — or go back to the parental home.

Rents stand at a record high, up by an average of 4.2 per cent since July last year in England and Wales and by 7.1 per cent in London, as measured by LSL Property Services’ buy-to-let index.